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Bike-O-Rama produces two bike models: Voltage and EasyRider. Departmental overhead data follow. Department Budgeted Cost Allocation Base Budgeted Usage Fabricating $ 131,600 Machine hours (MH)
Bike-O-Rama produces two bike models: Voltage and EasyRider. Departmental overhead data follow. Department Budgeted Cost Allocation Base Budgeted Usage Fabricating $ 131,600 Machine hours (MH) 9,400 MH Assembly 159,500 Direct labor hours (DLH) 2,900 DLH Required: 1. Compute departmental overhead rates using (a) machine hours to allocate budgeted Fabricating costs and (b) direct labor hours to allocate budgeted Assembly costs. 2. The company reports the following actual production usage data. Compute the overhead cost per unit for each model. Machine hours per unit Direct labor hours per unit Voltage 2.0 MH 1.4 DLH Easy Rider 3.0 MH 0.6 DLH 3. The company reports additional information below. For each model, compute the product cost per unit. Per Unit Voltage EasyRider Selling Price $ 274 180 Direct Materials $ 104 94 Direct Labor $ 40 16 4. For each model, compute gross profit per unit (selling price per unit minus product cost per unit). Required 1 Required 2 Required 3 Required 4 Compute departmental overhead rates using (a) machine hours to allocate budgeted Fabricating costs and (b) direct labor hours to allocate budgeted Assembly costs. Fabricating departmental overhead rate Assembly departmental overhead rate Required 1 Required 2 Required 3 Required 4 The company reports the following actual production usage data. Compute the overhead cost per unit for each model. (Round your "Hours per unit" a decimal place and other answers to 2 decimal places.) Department Departmental Overhead Rate Voltage Hours per Unit Overhead Allocated EasyRider Hours per Unit Overhead Allocated Fabricating Assembly Totals Required 1 Required 2 Required 3 Required 4 The company reports additional information below. For each model, compute the product cost per unit. (Round your answers to 2 decimal places.) Per Unit Direct Materials Direct Labor Overhead Product Cost per Unit Voltage EasyRider Required 1 Required 2 Required 3 Required 4 For each model, compute gross profit per unit (selling price per unit minus product cost per unit). (Round your answers to 2 decimal places.) Selling Price Product Cost Gross Profit Per Unit Voltage Easy Rider
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